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· KredilyExitOfficial

Gratuity

Summary

Last wage × 15/26 × years of service. 5 years for permanent staff; fixed-term staff get it pro rata after 1 year. Capped at ₹20 lakh.

Key points
  • The new wage definition applies from 21 Nov 2025
  • More than 6 months counts as a full year
What it means for Korean companiesReview how to treat service before 21 Nov 2025 together with your accounting provisions.

More

· ShifteePayOfficial

The 50% wage rule

Wages are basic pay, DA and retaining allowance. If the 11 excluded items, such as HRA, overtime and commission, add up to more than 50% of total pay, the excess is added back to wages.

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Gratuity · Adullam HR & Legal